Grain Futures Rise on Geopolitical Tensions and Crop Conditions

Chicago grain futures ended higher on Tuesday despite mixed fundamentals. Wheat, corn, and soybeans posted gains due to geopolitical tensions in the Middle East ahead of U.S.-Iran talks and the Federal Open Market Committee meeting. Traders also monitored harvest progress and crop conditions in the United States.

The September CBOT soft red winter (SRW) wheat futures settled at $243.42/t, up 0.38%. However, hard red winter wheat futures in Kansas City and spring wheat futures in Minneapolis finished slightly lower. The U.S. winter wheat harvest reached 81% complete as of July 26, two percentage points ahead of the five-year average.

Corn futures led Tuesday's gains, with the September contract rising 1.5% to $180.51/t after the USDA reported a private export sale of 197,272 tons of new-crop corn to unknown destinations. The U.S. corn crop had reached the silking stage at 78%, ahead of the five-year average.

Soybean futures also closed higher despite another deterioration in U.S. crop conditions. November soybean futures settled at $448.27/t, up 0.51%. China's state grain reserve company Sinograin is scheduled to auction 504,000 tons of imported soybeans on July 31.